Michael Shanks MP: speeches

Speeches

• 29 Oct 2024 · Great British Energy Bill · Hansard source

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  I do not have time, I am afraid. We are unapologetic that Great British Energy is a long-term project for this country, as part of a sustainable, long-term plan to protect bill payers for good. I stand by that commitment today. However, I also say, as we have said about so much of the mess that we have to clean up, that we cannot simply flick a switch and turn everything around, which is why these amendments are inappropriate. Conservative Members would never have made such amendments to a Bill when they were in government. Let me turn to the amendments on jobs and industrial strategy. The Government are clear that clean energy is the economic and industrial opportunity of our time. Around the world, a race for jobs and industries of the future is speeding up, but for too long Britain has opted out and lost out. Great British Energy is at the heart of our plan to change that. It will help to rebuild the UK’s industrial heartlands through its investments across every part of the UK, and locating Great British Energy’s headquarters in Aberdeen will tap into the high-quality talent pool of Aberdeen and Scotland as a whole. We will use every tool at our disposal to win jobs for Britain. We have established the office for clean energy jobs, and are focused on developing the skills of the future, so that we have a workforce that can deliver what we need in future. Crucially, it is why the Government are, as many hon. Members have said, committed to a proper industrial strategy. The amendments tabled by the hon. Member for South Cambridgeshire (Pippa Heylings) relate to the timeline for establishing Great British Energy, to energy efficiency and to community energy. Although I welcome and, frankly, share the hon. Member’s eagerness to get Great British Energy up and running as quickly as possible, we will not be supporting amendment 3. The Government have already shown themselves to be committed to setting up Great British Energy as quickly as possible, and there will be no further delays in doing so. Indeed, of all the things that my right hon. Friend the Secretary of State could be accused of, not moving quickly is not one of them.

• 29 Oct 2024 · Great British Energy Bill · Hansard source

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  Just say it in Gaelic!

• 23 Oct 2024 · Fusion Energy · Hansard source

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  It is a pleasure to serve in this debate with you in the Chair, Mr Pritchard. I thank my hon. Friend the Member for Bassetlaw (Jo White), for securing today’s important debate, and for the passionate way in which she spoke about both this issue and her constituency. It was genuinely inspiring—particularly what she said not just about the future of her community but about its heritage. I confess that I did not know the role my hon. Friend’s constituency played in the creation of the United States, but, as I used to say to my school pupils, every day is a school day, so I thank her for that. It would have been quite a striking debate if my hon. Friend the Member for Rushcliffe (James Naish), the chair of the APPG on fusion energy, had spoken about anything other than his support for fusion, but I welcome his invitation to join his group’s visit. I would say to my hon. Friend the Member for Bassetlaw that I think there are other Ministers in the Department who might be slightly frustrated if I cut the ribbon rather than them, but I am happy to do so all the same. I share my hon. Friends’ genuine excitement for this technology, and it is worth taking a moment to think about what we are talking about. The idea that we could produce an almost inexhaustible supply of low-carbon baseload sounds almost too good to be true—particularly as an Energy Minister trying to get us to where we are going to by 2030. It sounds like a fantastic proposition, but after many, many years of a lot of hard work, it is in fact within our grasp. Fusion creates nearly 4 million times more energy for every kilogram of fuel than burning coal, oil or gas—some of the statistics are staggering, and worth taking a moment to reflect on. It has a huge potential to bolster our energy security and to create thousands of good jobs at the same time, putting it at the heart of not just one of the Prime Minister’s key missions in Government but two: kick-starting economic growth and making Britain a clean energy superpower. What is even more exciting is that this country genuinely has an opportunity to lead the world on this and to become the global home of fusion energy, with all the considerable short and long-term economic gains that come with it. I thank hon. Members for being here and for their support for this new technology. It is difficult at times, with technologies that are perhaps not so well understood and are at that nascent stage, to keep the debate on them. It is important to have more contributions and speeches like the one we heard about the importance of this technology. The UK has been at the forefront of fusion energy research and development for more than 40 years, going back to June 1983—I will not tell hon. Members my age, but at that time I was not quite born—in a quiet corner of Oxfordshire, with the world’s largest operational fusion reactor. The Joint European Torus went on to break records and then break them again, with thousands of experts from across Europe playing their part in those experiments. JET closed its doors last year and we are now focused on building a whole new generation of fusion facilities in the UK. Domestically, the economic opportunities of fusion are huge. The sector already supports thousands of jobs, and our ambitions will see it deliver many more highly skilled roles in future. As my hon. Friend the Member for Bassetlaw outlined, it can also lead to breakthroughs in other areas, particularly in medicine, supercomputing and other green technologies. That is why it is important to attract private sector investment to this project. Some $7 billion has already been raised by global private fusion companies and that figure grows year on year. It is clear that the UK’s pro-innovation, proportionate approach to fusion regulation is attracting global interest but we want to go further, developing a national policy statement for fusion facilities that provides even greater certainty, encouraging billions more in private investment, driving further growth and supporting thousands more jobs. We are also investing in unique fusion research facilities at UKAEA sites across the country that UK-based firms can access, making it the natural home for fusion development. Internationally, fusion energy could be transformational, both as a long-term solution to energy security and, in this most decisive of decades, in tackling the climate crisis. This is a low-carbon, safe and abundant source of energy, which does not require huge amounts of land or natural resources for its production. That makes it the perfect power source for nations have relied on imported fossil fuels, or that do not have the capacity to deploy renewables at the scale many will need. Those are the same countries that are most likely to be affected by climate change. In other words, as global energy demand grows—and we know that it will considerably in the decades ahead—fusion energy could be critical to keeping net zero within reach, as well as ensuring that citizens everywhere have access to power. Other major economies, including the US and China, have realised that there are huge prizes on offer to be the first to commercialise this technology, including economic growth and global environmental leadership. Estimates of that fusion energy market between 2050 and 2100 put it between £3 trillion and £12 trillion. Without the spending power of the US or China, we must be targeted in how we maintain our leadership in this ever-closer international competition. As my hon. Friend the Member for Bassetlaw outlined, that is where the STEP programme comes in. Last month, I was privileged to be at Ratcliffe-on-Soar. It might seem odd for a Minister to be privileged to be at the closure of something, but the closure of our last coal-fired power station was a real moment in our energy story—a moment for us to recognise that the transition is well under way. We are now bringing a whole new industry to that part of the world with the creation of the world’s first civil fusion power plant. The aim is for the prototype plant to reach completion by 2040, and that will demonstrate that fusion can be a viable part of our energy mix in the near future. As my hon. Friend the Member for Bassetlaw is aware, it is a hugely exciting opportunity for local people in her constituency, for the wider region and for the whole UK, delivering thousands of jobs directly and in the supply chain. My hon. Friend rightly referenced the importance of skills development in fusion energy. There is a real opportunity to develop the skills of a next generation of young people working in the energy of the future. STEP will partner with private industry early on in its journey, working closely with engineering and construction companies. The work of identifying those partners is under way at the moment, with an announcement of the shortlisted bidders due in the following weeks. This is about not only maximising our chances of success, but utilising the local skills already in my hon. Friend’s community to breathe new life into an industrial heartland. At the same time, we will establish a strong fusion skills base and domestic supply chain to support STEP and enable it to compete globally. We are also running an outreach programme to schools in the area to encourage the uptake of fusion-related education, and developing relationships and grants with universities. We want fusion to be a sector that excites and inspires young people, and now is an important moment to unlock that potential. STEP is a first-of-a-kind programme, and there will, of course, be challenges. My hon. Friend the Member for Bassetlaw mentioned a number of the logistical challenges in the local area—we will work through those things together with the local community, and I know that she was involved in the local council for many years as well—but we have a huge advantage: four decades of research, a thriving financial landscape and a world-leading plan, which means that even before a commercially viable plan is delivered, the programme will have already supported thousands of jobs, skilled development and cutting-edge research. Ultimately, whether STEP or a different design is the precise one used to commercialise fusion technology, its development will already ensure that the UK has a supply chain to provide jobs and the recognition that we are in the lead in this technology. The Government are unashamedly pro-growth, pro-business and pro-innovation, and fusion is a great example of all three. It is such an important part of our plans because it covers all those points, and is a real opportunity for us to make progress and become the global lead in a genuinely transformative technology. That could ensure our energy security, drive huge growth and combat climate change here and far beyond our shores. STEP could, in short, be the UK’s Apollo moment, and I cannot wait to see where the fusion journey takes us. My hon. Friend the Member for Bassetlaw is a passionate and enthusiastic representative of the community driving forward this technology, and it is in safe hands. I pay tribute to her commitment both to championing this technology and to her wider community. Together, we can make this one of the most exciting moments in our energy story. Question put and agreed to.

• 22 Oct 2024 · Large-scale Energy Projects and Food Security · Hansard source

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  I thank the hon. Gentleman for his intervention and for the collegiate way in which he engages in these debates. We will be saying more about the future homes standard in due course, so I will not announce that here, but his point has been heard. I want to come back to the point about balance. It is key in a lot of the contributions made today, and indeed in other debates on this subject over the past few months. We have to find a way to balance the environment and our need to protect nature with supporting local communities to make sure that we can deliver cheaper, more secure energy in the future and tackle our climate change objectives. But new energy infrastructure is important in every single one of those points, so we have to build that infrastructure. The question is how to ensure we get that balance right. That is why we have announced that we will have a land use plan—something the previous Government failed to do. But it is also why we need to plan a lot of that infrastructure much more carefully. I reflect on the point made by the hon. Member for Mid Buckinghamshire (Greg Smith) about the number of projects in particular areas, because we can take a lot from that about the cumulative impact of projects. That is why, just today, we commissioned the National Energy System Operator to carry out the first strategic spatial energy plan of the whole of Great Britain. Crucially, we recognise that if we plan new energy infrastructure much more strategically, we will avoid some of the questions that he raises. That is a really important point. Nothing we have said rides roughshod over the planning system. The planning system in this country is extremely robust. People will continue to have opportunities to engage in that process and be consulted on. No matter the size of the energy project in question, it will be subject to a rigorous planning process, and the views and interests of the local community will be taken into account. On that point, I want to reflect on another Westminster Hall debate on community benefits, which are important here as well, and which the hon. Member for Ynys Môn mentioned in her opening speech. We need to do much more on community benefits, and solar is particularly important in that discussion. We have been very clear as a Government that we want to look at whether they should be mandatory rather than voluntary, and whether we should have a much clearer set of objectives for those funds so that there can be real community benefit. Ultimately, we want to do this with communities. Communities will have to host this infrastructure—there is no getting away from that—but it is important that they benefit from it in the process. Finally, the Government recognise that food security is also national security, and we will champion British farming while protecting our natural environment. That is why we have already said that we will introduce a new deal for farmers to boost rural economic growth and strengthen Britain’s food security. I want to be clear: I do not believe for a second that the accelerated roll-out of clean energy infrastructure poses a threat to food security. There are, of course, huge competing demands on land use throughout the country, and they have to be balanced. However, taking solar as an example, even under the most ambitious plans in the country, less than 1% of the UK’s agricultural land would be occupied by solar farms. I am afraid that the rhetoric does not meet the reality. That point has been backed up by the National Farmers Union, which believes that every farm is well positioned to deliver small-scale solar, wind or battery storage, which can be used on the farm but also provides benefits for local communities. Food production is incredibly important, as is energy production. Those two are not mutually exclusive, and we can find a way for them to co-exist. I was interested in the point made by my hon. Friends the Members for York Outer (Mr Charters) and for Reading Central (Matt Rodda). I recently visited Manor Farm solar farm, which is a good example of combining an agricultural strategy with a solar farm. It also contributes to the rewilding of areas and to the managed improvement in nature in the local community, which was not being done by the mismanaged agricultural land before, so we can get real benefits from it as well. This is an important debate, and the balance is key. We have made no secret of this: we want to see the rapid development of energy infrastructure. It is important because people are paying far too much in their bills and we are exposed to volatile fossil fuel markets. For every year that we remain exposed to those markets, we remain vulnerable to the price spikes that our constituents are facing, so it is important to move at pace. I recognise the point made by the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) about the pace at which we are moving, and I am grateful for his recognition of that. This is our clean power mission. Together, we can provide energy security, reduce costs to consumers, deliver on our environmental responsibilities and ensure that we have economic growth and responsible use of land right across the country. I will close by thanking all hon. Members for participating in the debate. I hope that we will have many more of these discussions. They are important debates to have, and together we can find the balance and deliver the infrastructure and food security that the country needs.

• 22 Oct 2024 · Large-scale Energy Projects and Food Security · Hansard source

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  It is a pleasure to serve under your chairmanship, Sir Mark. I thank the hon. Member for Ynys Môn (Llinos Medi) for securing this important debate. We have been in a number of debates on topics like this over the past few weeks. It is great that her speech reflected that she is a champion of the renewable sector and the benefits that can bring to her constituency. She said that her constituency is now known as “energy island”, which is a true reflection of the powerhouse it has become in recent years. It has established technologies: solar, as she talked about, but also onshore wind and a number of other projects to come. It is also home to some of our newer technologies: tidal stream projects of around 38 MW are in the contracts for difference rounds, and we will be talking much more about that in the future. I thank hon. Members for the tone of today’s debate and for their contributions. Our starting point, which the Government have been very clear on from day one, is that we want to deliver clean power by 2030. We want to do that for a number of reasons: to protect people from the wild price spikes that they suffered because of the volatility of global fuel markets, to tackle climate change—a lot of the discussion today on the importance of agriculture misses the importance of tackling climate change, which is currently having an enormous impact on farms right across the country and, if we do not act faster now, will continue to have an even greater impact—and to deliver the energy security the country needs.That will involve a diverse range of projects and technologies We are not putting one technology forward as the answer to everything—this is about balance, as several hon. Members said today. Yes, ground-mounted solar plays a really important part, but so too does roof solar. We are not picking one or the other. Both are incredibly important, and there are huge opportunities for a rooftop solar revolution, which we will be seeing more about in the months ahead. But ground-mounted solar also has an important role to play. This is a question of balance.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  It is a pleasure to serve under your chairship, Dr Huq, and to see Committee members again. Having started the sitting with contributions from four Scottish MPs, we have gone through the greatest hits of Scottish politics, from the Thatcher Government to independence, Scotland’s wind and everything in between. It was a good way to start the Committee this morning. Amendment 3 misunderstands not only the potential of Great British Energy, but how investments are already made in renewable projects in this country. The right hon. Member for Aberdeen South made a legitimate argument about the revenues from oil and gas over the past 60 years but, as hon. Members have already said, in more recent times and much closer to home, the legacy of the future of our energy story has already been squandered. What could have been almost £1 billion for our wealth fund to invest in future projects or in the inheritance of the country has already been spent to plug day-to-day spending. There is a danger that in such a short space of time we will repeat that oil and gas legacy in Scotland. Great British Energy will invest in all four nations of the United Kingdom, and we are working closely with the devolved nations to make that a reality. Investments by Great British Energy will be made on the basis of the individual project, with decisions made at arm’s length from Government by an independent company. Clearly, with its leading role in renewables, Scotland will benefit from a great many of those investments, creating skilled, well-paid jobs in the process, with a genuine long-term investment in Scotland. That public investment is about crowding in private investment as well—and that is where I think the amendment misunderstands how the projects are delivered. As much as the right hon. Gentleman and his colleagues might talk about how it is Scotland’s wind and Scotland’s waves, the reality is that without having crowded in investment through a publicly owned energy company such as Great British Energy, every penny that has already been spent on constructing projects in Scotland to generate electricity from our natural resources has gone offshore to private companies and foreign publicly owned companies. We greatly welcome that investment in Scotland and in the UK, which will continue in the years to come, but the purpose of the Bill is to ensure that a publicly owned energy company, owned by our taxpayers, can have a stake as well. The Bill, through Great British Energy, will allow some of that wealth to be retained for the benefit of our citizens. It is our intention that the profits generated by Great British Energy will either provide a direct return to the Exchequer, benefiting the UK taxpayer, or be channelled specifically into measures that benefit the public, such as investment in more clean energy infrastructure. It is about benefiting people right across the United Kingdom, recognising that the investment came in the first place from taxpayers right across the United Kingdom. For those reasons, the Government will not support the right hon. Member’s amendment 3.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  My hon. Friend never misses an opportunity to mention Cornwall, but let us not relitigate our earlier argument. There are huge opportunities. The hon. Member for Gordon and Buchan made the important point that there are certain parts of the country, particularly in the north of Scotland, where for obvious reasons there are a number of wind projects, and we need to look at the infrastructure that comes with that. We want to ensure we build the nationally important infrastructure to deal with the connections issue that the shadow Minister rightly raises, but we also need to recognise the need for cohesion in planning to make sure that there are not some of the issues that we have seen in other parts of the UK, where a number of projects have come on stream over time rather than being planned coherently. Finally, on community involvement, the point about consent in dealings with communities is important. We want to take some of the previous Government’s work on consulting on community benefits—we will say more on this in the coming months—to make sure that there is genuine community benefit in hosting not just energy generation infrastructure, but network infrastructure, which will be critical. Nothing that we have said runs roughshod over the planning and consenting process, which will remain for communities.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  Clause 7 has fairly standard wording for a Bill of this kind and for a company of this kind. Under section 441 of the Companies Act 2006, the directors of any company—Great British Energy will of course be one such—are required to deliver annual reports and accounts. The clause simply requires that Great British Energy deliver its annual reports and accounts to the Secretary of State, in addition to filing them with Companies House, and that the Secretary of State lay a copy before Parliament in due course. It is common practice for a company to publish its annual reports and accounts on its website. They will also be available on the Companies House website in the usual way. None the less, the clause will ensure that Parliament receives the annual report and accounts directly so that it can scrutinise them and assure itself that the company is fulfilling its duties. I commend the clause to the Committee. Question put and agreed to. Clause 7 accordingly ordered to stand part of the Bill. Clause 8 Extent, commencement and short title Question proposed , That the clause stand part of the Bill.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I know that the Conservative party is in shifting political sands at the moment, but I was not expecting this morning to lead with such a full-throated defence of Thatcher—I do not think she is in the running for the leadership of the party.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  You were once!

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  The question of balance, which I was just about to come to, is important. The right to a public inquiry can be triggered by a much smaller number of people in Scotland than in the rest of the UK, so there have been real issues: communities do not generally have a view, so individuals or campaign organisations trigger public inquiries. We are looking at the consenting regime, as I think the hon. Gentleman’s Government was, to bring balance to this. Balance is key. The Government, from the Prime Minister down, have been clear that we will need to build this infrastructure, which is nationally important for all the reasons that the shadow Minister set out. That is why the amendment is so extraordinary. The shadow Minister said that we need to tackle the huge connectivity challenge—I wrote that down—and the Bill is the mechanism for doing that. Balance is key: my hon. Friend the Member for Na h-Eileanan an Iar made it clear that we want communities to benefit from having a stake in what Great British Energy will deliver, but it is important that we get on with building this infrastructure. For those reasons, we will not support the amendment.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I thank the shadow Minister for his attempt to add an additional clause to the Bill. I will speak briefly about why we do not support new clause 2, but I agree with him on the importance of ensuring that Great British Energy be accountable, transparent and clear about how it is delivering on its objectives. We absolutely want to see that as well. We believe that the Bill is in a strong place at the moment. It will, of course, utilise all the mechanisms already in place for other companies, including publicly owned companies, through its annual reports and accounts. It will provide regular updates on its work, meeting its objectives and the stewardship of the public funds that it is given. It is important to recognise that the reports, accounts, other information and directions that have been given will be laid before Parliament and will therefore be readily available to hon. Members. In the same way as any other company operating in the UK, Great British Energy will undergo external audit of its accounts, providing a further level of assurance. It will be expected to publish its own strategic plan on how it will deliver its objectives, which will be laid before Parliament. I do not think it proportionate to add another mechanism for an annual independent review. I note the shadow Minister’s point about the UK Infrastructure Bank, but the rhythm of independent review was that it would happen once the bank had been operating for seven years and would be repeated at intervals of no more than five years. I do not think the new clause proportionate to what was introduced in the UK Infrastructure Bank Act 2023. In the light of what my hon. Friend the Member for Whitehaven and Workington described as the shadow Minister’s secret support for the Bill—he doth protest a little too much in saying that he opposes it—I would hate to suggest that the new clause was some kind of mechanism to stymie the action of Great British Energy. However, the frequent cadence that the shadow Minister proposes for the review would considerably interrupt the work of the company in actually delivering. It would be under almost continuous review, which does not seem proportionate or effective for a company that we aim to move in a nimble and speedy way to deliver for the British people. I would rather Great British Energy got on with delivering for the British people on its important mission to deliver projects to benefit all the United Kingdom. We will not support the new clause.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  That has nothing to do with it.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  Some things are outwith even the hon. Gentleman’s powers. There are a number of reasons why we will resist amendment 20. First—I have made this point a number of times—the Bill is about making the minimum possible provisions to support the establishment of the company. Great British Energy will be operationally independent and, although directed at key points by the Secretary of State, its financial responsibilities will be the same as any other company, subject to all the regulations and laws that any company in this country has to face. The amendment would introduce unnecessary detail into the Bill. As the hon. Gentleman would have agreed in previous Bills that he was involved in, this is an unnecessary amendment, and he would be making that exact argument if he was standing where I am today. As a publicly owned company, Great British Energy will be accountable through regular reporting to the Department, and its annual accounts and reports will be laid before Parliament so that Parliament can see them in detail. As a publicly owned company, it will also be subject to HM Treasury’s value-for-money guidelines. Like all existing public finance institutions, its investments will be subject to the usual safeguards and risk assessments to minimise the risk to taxpayers. As I said in our last sitting, the purpose of clause 6 is for the Secretary of State to give direction to the company only in the most urgent or unforeseen circumstances. It is not for day-to-day operational reasons; I gave the example last time of national security issues. The power is meant to be used sparingly to ensure that Great British Energy has the space it requires to fulfil its role and deliver its strategic priorities. The amendment would change the intention of the clause, which is one reason we will resist it today. As the hon. Gentleman knows, the Secretary of State will set Great British Energy’s strategic priorities to ensure that it remains aligned to current Government policy and strategy. It is therefore appropriate that we use clause 5 to set Great British Energy’s strategic priorities and objectives, not clause 6. I assure the hon. Gentleman that the Secretary of State, rightly, has ambitions for Great British Energy—as the whole Government do and as I hope the whole House does. Those achievable objectives will be achieved through the funding envelope set for it by Parliament, backed by £8.3 billion of new money over the lifetime of this Parliament, and working in partnership with the private sector, local authorities and communities to spread skilled jobs and investment across the country. Great British Energy’s aim is to become a financially sustainable, self-financing organisation in the long term, reinvesting its profits in the Treasury or into new projects. Therefore, I assure the hon. Gentleman that Great British Energy will be held accountable for the delivery of its objectives through the usual mechanisms. For those reasons, the Government will not support his amendment today and I hope that he withdraws it.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I am hoping that at some point someone will want to take part in a debate, to save the Committee from hearing only from me. Clause 8 sets out the extent of the Bill, which is important, and its commencement. The Act will come into force immediately on its passing, reflecting the fact that setting it up has been one of the Government’s key priorities, which is why we commenced the process and introduced the Bill to the House within our first 100 days. It is important to us that the Bill reach the full territorial extent of the United Kingdom and that it benefit citizens in England, Scotland, Wales and Northern Ireland. We have shared net zero targets across the whole UK. Clearly the devolved Administrations have different responsibilities for different aspects of energy policy—it is generally reserved, but in Northern Ireland it is transferred—so the role of Great British Energy will be slightly different in different parts of the UK, but it is important to say that the investments that Great British Energy makes can still drive deployment, create jobs, boost energy independence and ensure that taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy across the UK. I thank the devolved Administrations, who have engaged with me since my appointment as Minister on the Bill. We have had detailed and helpful conversations with my counterparts in all the devolved Governments across the UK. I thank them for how they have engaged in our discussions: they have been supportive of Great British Energy, recognising the benefits that it brings to all parts of the UK, while clearly advocating on behalf of their own Governments. It is important that we continue that. My commitment to them and to the Committee is that we will continue the process after the Bill passes to ensure that we have a company that delivers for all the people of this United Kingdom. I thank them for their constructive and collaborative approach. I commend the clause to the Committee. Question put and agreed to. Clause 8 accordingly ordered to stand part of the Bill. New Clause 2 Review of effective delivery “(1) The Secretary of State must appoint an independent person to carry out reviews of the effectiveness of Great British Energy in— (a) delivering its objects under section 3, (b) meeting its strategic priorities under section 5, and (c) complying with any directions given under section 6. (2) After each review, the independent person must— (a) prepare a report of the review, and (b) submit the report to the Secretary of State, as soon as is reasonably practicable after the completion of the review. (3) The independent person must submit to the Secretary of State— (a) the first report under this section within the period of 12 months beginning on the day on which this Act comes into force, and (b subsequent reports at intervals of no more than 12 months thereafter. (4) On receiving the report, the Secretary of State must, as soon as is reasonably practicable in each case— (a) publish the report, (b) lay a copy of the report before Parliament, and (c) prepare and lay before Parliament a response to the report’s findings. (5) In this section, references to an ‘independent person’ are to a person who appears to the Secretary of State to be independent of— (a) the Secretary of State, and (b) Great British Energy.”— (Andrew Bowie.) Brought up, and read the First time.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I have to say that of all the amendments before the Committee, I find this one utterly extraordinary. The shadow Minister’s amendment says that Great British Energy “must take all reasonable steps to satisfy itself at the time of any investment in…infrastructure that connection to the National Grid will be made in time for energy produced from the relevant investment asset coming onstream.” The recognition, after 14 years, that dealing with the issues with connections to the national grid should somehow be important is extraordinary. For the hon. Gentleman to wake up this morning, just a few months after leaving government, and decide that fixing this problem is a massive priority is quite something. I am genuinely concerned by some of the language that we have heard today. The shadow Minister spoke, quite rightly, about Cameronian support for the climate. I wonder whether the Conservative party, after such a short time, ever takes a look at itself and wonders whether the rhetoric that it uses about the mechanisms we are going to use to tackle the climate crisis is in the right place. I know we have some net zero sceptics in the running to lead the party, but it is quite extraordinary to say in one breath that there are huge connectivity challenges for the country and that communities are “under siege”.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  Inspirational!

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I thank the hon. Gentleman for succinctly introducing his amendment; I will be succinct in my response. In debates about previous amendments, I made the points—I will not repeat them—that we should not add unnecessary burdens to the Bill or use the power in clause 6 for different purposes. I know he takes that argument seriously. Amendment 21 significantly widens clause 6 from its intention, which is why we will not support it. I reiterate, however, that Great British Energy will operate not through some extra-legal mechanism, but in the exact same way as every other company in the UK, and will be responsible in the usual way, under the Companies Act 2006, for the presentation of its accounts. In addition to filing those accounts, financial information, annual reports and so on with Companies House, they will of course be laid before Parliament, and I will personally make sure that the hon. Gentleman receives a copy the moment that it is printed—he can hold me to that—so that, quite rightly, he can scrutinise them. It is important to say that the day-to-day financial management of the company will be in line with Government regulations. The point of setting up Great British Energy as an independent company is that it will have an expert fiduciary board that will scrutinise the accounts in the usual manner. For those reasons, we do not think that amendment 21 is necessary.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I think that doubling down on the language is not helpful either, but I will come back to both those points. I recognise the importance of the point about communities and a more strategic approach to infrastructure to ensure a balance. That is why we have commissioned the National Energy System Operator to look at the strategic spatial energy plan, which is important in how we look at energy in a strategic way. To say that communities are under siege is not the right language. This is nationally important infrastructure. The Opposition do not support Great British Energy, but as my hon. Friend the Member for Na h-Eileanan an Iar said, Great British Energy is one mechanism whereby communities can benefit from infrastructure where they are not benefiting at the moment.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I will not detain the Committee long, as we have already discussed aspects of the clause in our debates on the various helpful amendments tabled by the shadow Minister. Clause 6 will ensure that there is a mechanism in place purely for any unforeseen or urgent circumstances that may arise. For example, it could be used if the Secretary of State considers it necessary to give Great British Energy some kind of direction, in the interests of national security or otherwise, to respond to something in the public interest. This is about preparing for all eventualities, as we would expect of the Government. It is important to know that the power is very similar to that set out in other legislation of this kind. For example, it was included in the UK Infrastructure Bank Act 2023 and the Energy Act 2023 for Great British Nuclear. Finally, I hope the Committee will be reassured by the requirement in the clause for the Secretary of State to consult both Great British Energy and other appropriate stakeholders before issuing a direction. To ensure public transparency, as we would expect, any directions given to Great British Energy will be published and laid before Parliament. I commend the clause to the Committee. Question put and agreed to. Clause 6 accordingly ordered to stand part of the Bill. Clause 7 Annual accounts and reports Question proposed , That the clause stand part of the Bill.

• 15 Oct 2024 · Great British Energy Bill (Fifth sitting) · Hansard source

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  I was going to end on an argument about why the Conservative party is in such a rut, but the hon. Gentleman has changed the tone completely. I feel lost with my political attacks, so I will move swiftly on to why new clause 3 is not necessary. I will not detain the Committee long. The argument is clear that there are quite established governance arrangements in place for companies of this type, and it is not necessary for primary legislation to make provision on the detail of the board of directors. There are a number of very well-established governance documents that set the course for this. The UK corporate governance code published by the Financial Reporting Council sets out best practice, to which Great British Energy will conform. The interim chair Juergen Maier, whom we met last week, is in place to start up the company. Recruitment is under way for other key posts, and the permanent chair and the non-executive directors will be recruited in due course. The governance code on public appointments will make it clear how those will be carried out; they will be regulated by the Commissioner for Public Appointments. Although I recognise the shadow Minister’s legitimate points about transparency and accountability, I think his new clause unnecessary. Rather than giving my prepared remarks criticising the Conservatives’ position, let me gently say that I am grateful that in the three days on which the Committee has met, the shadow Minister has moved closer and closer to voting Aye. I am confident that by Report he will be in the right Lobby. I welcome that move. I genuinely thank all hon. Members for serving on the Committee; it has been a pleasure. Dr Huq, I thank you and Sir Roger for your stewardship of the Committee, along with everyone who has been involved in delivering its sittings. I also thank all our witnesses who gave their time freely last Tuesday. It was quite a lengthy session, but they gave important evidence—not least because every single witness confirmed how important Great British Energy is to delivering our mission to move to clean power by 2030. As it has been three months now that I have had the privilege of having this job, I will finish by echoing the shadow Minister’s points, which were heartfelt, genuine and absolutely right, about the exceptional skill and qualifications of civil servants in what was once the Department of Energy and Climate Change. A change of Government is a considerable thing for the civil service, but it has moved at pace, as the Government have. I give real credit to the civil servants who make things happen and who so often do not get the credit for their hard work. I thank them all, and I thank hon. Members for their consideration. I do not support new clause 3, but I thank everyone for their time today.

• 15 Oct 2024 · Renewable Energy Projects: Community Benefits · Hansard source

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  It is a pleasure to serve under your chairmanship again today, Dr Huq. It is good to look out and see so many of my colleagues from the Great British Energy Bill Committee here to discuss energy again. I am glad we got the Bill through Committee quickly enough for us to be here—we did not need our afternoon session. I do not have a huge amount of time, and I want to get to as many hon. Members’ contributions as possible. Of course, I want to leave the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) time to conclude this important debate—I congratulate him on securing it. Hopefully he will see from the enthusiasm and the level of participation how important others find this subject. I know from his maiden speech and other contributions how important it is for him and his constituents. Just a few weeks ago, I had the real pleasure of visiting the hon. Gentleman’s constituency; I went to the Isle of Eigg to spend a day learning about the community energy project there. Although in some ways that project is unique, it is a very good example of how a whole community can benefit from such projects. The community genuinely has the power in its own hands—it has its own micro-generation grid—and it has received other benefits as people have upskilled themselves so that they can understand how the grid works and manage it. I thank all right hon. and hon. Members for their contributions. I will try to respond to as many as I can, but I will briefly start with the context. This Government have come to power facing three interlinked challenges—ensuring energy security, displaying climate leadership and bringing down bills for people across the country—to which our response is our clean power by 2030 mission. Clean power is the only way to protect our constituents from the rollercoaster of price spikes that we have faced over the past few years, and to deliver the climate leadership that we need. That is why we introduced the Great British Energy Bill within our first 100 days, and why it is progressing through Parliament as quickly as possible. Great British Energy, which will have its headquarters in Aberdeen, is an important part of our plan to increase the delivery speed of renewables projects and, crucially—I will come back to this point—to ensure that the British people have a stake in that energy future. The Conservative party has for many years accepted the premise of publicly owned energy companies, but it does not support the premise of the British people being part of a publicly owned energy company—just ownership by companies from beyond our shores. Of course, we welcome their investment in this country, but with Great British Energy, we are saying that we would also like the British public to have a part to play. A number of hon. Members made points about community ownership. Although this debate is about community benefits, I think, as some hon. Members have said, there are links between them. The Great British Energy Bill is about setting up the company, but there is a wider context in the Government’s local power plan, which commits to much more community ownership of energy, and ensuring that communities large and small have the funding and, crucially, the capacity to take forward some of those projects themselves. Delivering on our clean energy mission, which is undoubtedly ambitious, will require action on a number of fronts. I want to touch on infrastructure, which many hon. Members have mentioned. There is at the heart of the current Conservative party’s rhetoric on that subject a fundamental contradiction. We heard it from the shadow Minister, the hon. Member for Wyre Forest (Mark Garnier), but I also heard almost exactly the same words from the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) on the shadow Front Bench in the Committee earlier today, where on the one hand, there is a recognition that we need significant upgrades to the grid, and yet on the other hand, there is no desire to make a commitment to building any new infrastructure to deliver it. Both those things cannot be true at the same time. I gently point out to Opposition Members that after 14 years of government, that is not a new problem. The grid did not suddenly fall apart in July 2024, with the Labour Government. That challenge has been facing the country for a long time. Indeed, I would meet Conservative Members halfway and say that even beyond the 14 years they were in government, there has been a challenge on the grid. However, they had 14 years to take action and did not. This Government are now moving forward. If we want to see the connections issue resolved, and community projects able to connect into the grid, as hon. Members have mentioned, we do need to build some of that infrastructure. That requires communities to host the infrastructure, so I turn to a number of points that were raised about how we work in partnership with communities—using collaboration, not coercion. It is important that the entire mission is a national one—for Government, but also to ensure that every member of the public is part of our achieving clean power by 2030. Key to that will be reforms to planning regulations. To deliver the critical infrastructure that this country needs, nationally significant infrastructure must be built; our planning system is holding that back. The planning and infrastructure Bill, which we will introduce shortly, will speed up and streamline the planning process. We will also be updating relevant national policy statements within the next year, in order to provide certainty to industry. In Scotland, the current electricity infrastructure consenting regime is from the Electricity Act 1989 and has not been updated in line with other legislation across the UK. The regime is too slow and is holding back investment. I am working closely with my Scottish Government counterparts on how we develop a set of proposals to reform that and speed up the new infrastructure development that we need. I come back to the point that hon. Members have rightly made—that as much as we need to streamline the planning process because we need to build the infrastructure, communities must be at the heart of it. Public engagement and consultation will continue to be incredibly important, but so also will be a more holistic approach to planning energy infrastructure in the first place. That has been the root cause of many of the challenges that hon. Members have raised today. The lack of strategic planning for some of our energy infrastructure in the past has led to bottlenecks, which we want to avoid in future. Finally, I turn to the point about communities living near clean energy infrastructure, including the transmission infrastructure that we need to build. Let us be clear: communities, by hosting that infrastructure, are providing a service to the country. It is essential that we build that infrastructure; it must be built somewhere. The challenge I have with some of the discussion on that subject is that we fall into the trap sometimes of saying, “Yes, we agree we need to upgrade the grid, but not anywhere near my constituency, please.” That will not work, unfortunately. We want to ensure that those communities that do host this infrastructure, on behalf of us all as a country, directly benefit from it. Communities are important, not just in terms of hosting infrastructure but in terms of the wider acceptance of the direction of travel that we are taking. We need communities to be with us if we are to achieve the necessary pace. At the moment, as has been raised, such community benefits are voluntary arrangements. They could be monetary or non-monetary schemes; there are a variety of different options across the country, some that work extremely well and others that, as many here know, do not work so well. The voluntary nature of arrangements for delivery of community benefits does lead to these significant variations.

• 15 Oct 2024 · Renewable Energy Projects: Community Benefits · Hansard source

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  That is a very important question and I was going to come to the hon. Gentleman’s specific point in a moment. He is absolutely right. Since I came into post, I have been working with my counterpart Ministers in the Scottish, Welsh and Northern Ireland Governments on how we can work together. Clearly, in Northern Ireland that is slightly different because energy is transferred, so the policy levers are slightly different. However, we do have the same outcomes in mind throughout the UK, which is really important. I will continue to work with Conor Murphy and the wider Executive to bring us together as much as possible, because the hon. Member makes a very important point. On community benefits in particular, we are continuing—at pace—the work started by the previous Government to review how we can effectively deliver benefits for communities living near this infrastructure. We are looking at examples across Europe—we are not on this journey on our own; there are other countries that have been doing this for a very long time, and we are learning from that—and developing clear guidance on community benefits for both the infrastructure and the transmission networks. We will publish that in due course. Great British Energy’s role will be to build upon existing community energy schemes under way across England, Scotland, Wales and Northern Ireland. It will build on that experience to contribute more where it can. I shall now respond to a few of the specific points raised by hon. Members. The point on solar projects, raised by the hon. Member for Glastonbury and Somerton (Sarah Dyke)—who is not in her place, but I will write to her on this—is an incredibly important one. Part of the aim of the solar taskforce set up by the previous Government and reconvened by this Government is to set out a very clear pathway for these projects. Several hon. Members mentioned standing charges. The Government are looking at that issue right now. We accept that far too much of a burden and too much of bills comes from standing charges and we are working with the regulator to do much more about that. Although I listed 12 other points from hon. Members, I am conscious that I have eight minutes in which to cover them. To allow the hon. Member for Inverness, Skye and West Ross-shire time to wind up the debate, I will close by saying that as a Government we take this issue very seriously. Our ambition is to bring communities with us on this journey. We want to do that through a collaborative approach, with all hon. Members, but also with communities at the heart of this. We will have much more to say on that in the weeks and months ahead.

• 14 Oct 2024 · Nuclear Industry: Cumbria · Hansard source

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  I congratulate my hon. Friend the Member for Whitehaven and Workington (Josh MacAlister) not only on securing this important debate and managing to get a considerable turnout for an Adjournment debate, but genuinely on the passion that he has brought, on behalf of his constituents, to this issue. I think he has had more meetings with Ministers in my Department than any other Member of this House in the past three months, and that is a credit to him. In his opening remarks, he spoke passionately about the importance of nuclear and the need for this Government to pick up from where the previous Government left off, having built no new nuclear in 14 years. We are picking up this work at speed. It has barely moved forward since my right hon. Friend the Energy Secretary was previously in the role, 14 years ago. I welcome this opportunity to set out the Government’s position. Cumbria is vital to the UK’s energy, defence and nuclear industry, from Barrow-in-Furness, where the Ministry of Defence is building and maintaining nuclear submarines; to Drigg, where the low-level waste repository disposes of nuclear waste; to Seascale, which is home to the most significant nuclear facility in the country; and finally to Carlisle, where Nuclear Transport Solutions, owner of Direct Rail Services, operates a crucial railhead for nuclear transport. Each of these locations plays a vital role in our nation’s nuclear infrastructure, ensuring safety, security and innovation in the nuclear sector. As my hon. Friend outlined, Cumbria’s journey has been a remarkable one, of achievements, technological advancements and steadfast commitment—a testament to the people in this area, who have opened their arms to nuclear and who continue to do so. The story begins post world war two, a time of rapid scientific progress in the global nuclear race. As my hon. Friend the Member for Whitehaven and Workington noted, the Calder Hall nuclear power station—opened by Her Majesty in 1956—was the world’s first commercial nuclear power station, generating electricity for 47 years and providing valuable insights into reactor operations. In the 1980s, the site underwent a significant transformation and was renamed Sellafield. That name change signified the site’s broader mission, shifting from solely plutonium production to encompass a wide range of nuclear activities including fuel reprocessing, waste management and environmental restoration. As the nuclear industry matured, Sellafield’s focus shifted once again towards decommissioning and environmental clean-up. The Nuclear Decommissioning Authority, established under the Energy Act 2004, oversees nuclear decommissioning across the UK. Its mission is to clean up the legacy of nuclear waste safely, securely and cost-effectively. Sellafield is central to that mission: spread across some 276 hectares in Cumbria, it is tasked with decommissioning ageing nuclear facilities, managing nuclear fuel and materials, and ensuring the safe disposal of nuclear waste. The site uses advanced technologies and expert knowledge to tackle those challenges, showcasing the innovation and resilience of the UK’s nuclear industry. Tackling the UK’s civil nuclear legacy safely, securely and cost-effectively is a national priority, with more than £3 billion being invested this year alone to ensure the NDA and its subsidiaries continue its mission to clean up the UK’s nuclear legacy. Under the Energy Act, the NDA also has the supplementary function of promoting economic development, social wellbeing and environmental sustainability. Figures on the NDA’s economic contribution to west Cumbria show that its local activity supported £1.3 billion of gross value added across the local economy, which is 40% of the total gross value added for the entire area. That is why this Government’s commitment to new nuclear—which I restate—is so important. My hon. Friend and a number of my colleagues rightly mentioned the standstill approach of the previous Government: a lot of warm words, but 14 years of inaction. I notice that no Conservative Members are in the Chamber this evening. The legacy of nuclear activity in north-west Cumbria is important, but so too is its future. It continues to inspire confidence and optimism, with a decommissioning mission lasting over 100 years. The NDA and Sellafield will continue to contribute to the community of west Cumbria and remain at the forefront of that vital work. Of course, the region also remains a pioneer in nuclear research and development, contributing to advancements in reactor technology, waste management and environmental protection. The lessons that we learn from Sellafield are invaluable assets right across the country and the world, guiding future endeavours in the nuclear sector. We welcome the continued engagement of the two Cumbrian communities involved in the national process to find a suitable site for a geological disposal facility. It is a unique process whereby the local community will have the final say on whether it wants to host that facility. As my hon. Friend the Member for Whitehaven and Workington outlined, west Cumbria is also home to Moorside, a previously designated potential new nuclear site and one of several that has the capability to host future civil nuclear projects. That site’s location—adjacent to Sellafield—would need to be factored into any future considerations, and any prioritisation of projects in west Cumbria will of course take into account how to maximise public benefit. As we look to the future of Cumbria’s nuclear industry, we face both exciting opportunities and significant challenges. To meet the demands of our growing nuclear programme and to have a workforce pipeline, industry modelling suggests that we need to fill 40,000 jobs by 2030. That means we must more than double our current recruitment rates to ensure we have the skilled workforce necessary to drive our nuclear ambitions forward. The skills challenge can only be tackled through cross-sector collaborative action, and the Government remain steadfast in their commitment to work closely with the nuclear sector to deliver on those actions, in order to build a workforce that is ready to meet the demands of the future. Cumbria’s nuclear future is bright, and with continued collaboration and dedication we will ensure that it remains at the forefront of the nuclear industry, driving innovation and sustainability for generations to come. I want to turn to the specific questions my hon. Friend raised about the land at Moorside. On whether the Government can make clear the primacy of new nuclear on the sites currently listed in the 2011 national policy statement, the statement listed eight sites as being potentially suitable for the deployment of new nuclear by 2025. The sites were nominated to that process by third parties, and it was never intended that listing such sites should restrict their future use. Any nuclear project at these potential sites must be subject to development consent or to examination and approval, as well as site licensing and other regulatory requirements. On whether Great British Nuclear could consider the technical potential of Moorside without potential future decommissioning projects nearby, I note that GBN has considered a number of sites, including Moorside, from both a project delivery and a technical perspective. The fact is, however, that the location of the site adjacent to Sellafield does need to be factored into any consideration. Any interaction between existing or future projects could introduce additional complexity, potential pressures on supporting local infrastructure and increased delivery risk. I want to assure the House that use of the land at Moorside will undoubtedly bring investment and employment opportunities in the region, and any decisions will be made with the utmost priority given to the maximisation of opportunity for the local community. West Cumbria’s nuclear history shows its commitment to scientific progress, environmental stewardship and public safety, and by working together we can ensure the best possible outcome as we navigate the complexities of nuclear decommissioning, waste management and this Government’s absolute commitment to new nuclear. Question put and agreed to.

• 10 Oct 2024 · Great British Energy Bill (Fourth sitting) · Hansard source

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  I agree with the broad arc of what the right hon. Gentleman has just said, but there is no mechanism for Great British Energy to impose anything on the Scottish Parliament. The whole point I was making is that it is important to recognise that Great British Energy has to operate within whatever framework any Scottish Government set for it.